Get Started

Start accepting payments now! It's quick and easy to get started.


Read our latest contributions in some of the biggest publications.

  • reddepayments

The Payments Ecosystem!

payments ecosystem

The payment industry is always evolving and looking for more innovative solutions and a faster way for consumers to pay. From the perspective of the everyday consumer, processing payments might seem pretty simple. Either you're accepting electronic payments or making a purchase. You might not know that there is a very complex/behind-the-scenes operation occurring. In this article we will reveal who exactly is involved and what role they play in the payments ecosystem!

The payment ecosystem begins with...


The Issuing Bank:

Issuing banks govern the direct relationship with consumers. When you open up a bank account at any bank of your choice, the bank typically grants you an account along with checks and a debit and/or credit card. This is the beginning of the payment network as it grants consumers access to their accounts by allowing them to make payments with their credit or debit card at any location.

Next, we have...

card brands

The Card Brands:

The card brands work in conjunction with the banks to provide a connection to their network. This is why when you receive a card from the bank it contains most of the time, a VISA or MasterCard logo. The card brands provide the necessary infrastructure to connect the issuing bank with the merchant who will be receiving the payment from their member. In addition, card brands regulate businesses that accept payments and are responsible for creating regulations for accepting payments.

Then, onto...


The Processor:

Processors are responsible for providing merchant accounts to business owners. These accounts come with certain perks. For instance, those who open an account with Redde will receive perks like: Online reporting portals, equipment for accepting payments, customer service/tech support for their business, next day funding, higher limits and more!

The processor cheers on the business and is the main support whenever an issue arises. Processors also connect the business to the card brand networks!

Next, we go to...

acquiring bank

The Acquiring Banks:

Acquiring banks typically sponsor processors and send payments to the business owner. They serve the role of depositing the merchant's funds into their bank account. Acquiring banks also regulate what business types the processor can accept and board.


The payments industry is very complex and it can be confusing. When merchants become educated on the payment ecosystem they can learn how to save money by properly pricing their goods with payment fees in mind. If a merchant knows how much they will be charged for the many different ways there are to accept credit cards, merchants can choose a preferred method that will end up saving them money. Now that merchants comprehend all of the moving parts of the ecosystem, they can understand what they pay for and why! Educating merchants is a top priority of Redde's! Learning about the payments ecosystem, billing or even reading statements can help you make more informed decisions that benefit your business. Plain and simple - the more you learn about this fast-paced industry, the more your business can save!

There is so much more to be discovered, keep on learning!

Want to switch to Redde? Let's get started!

Related Article: How Your Money Gets to You!